With the news that UK
unemployment has fallen to 2.16 million, RTA Business asks this week, what the
current trend in employment statistics means for the savvy business owner,
looking to sell their company in the current economic climate.
At RTA Business We Know Why Unemployment Numbers Matter
Here at RTA Business, we know
that when you decide it’s time to part with your business, you want to receive
a return on every last bit of hard work that you’ve put into your company. In
order to do that, we have learned in our tenure as a business sales facilitator
that if you want to receive the highest return possible, you need a favourable
economic environment.
That’s why unemployment figures
are key. When the unemployment rates fall, it generally means that companies
are hiring; expanding to make more money. Expanding companies often look to
diversify their business model, and lift their bottom lines, by buying other
companies. Essentally, the lower unemployment numbers are, the more likely you
are to sell your company.
An Employment Trend
The last several years have not
been encouraging when it comes to unemployment numbers. The recession that hit
the country due to the global economic crisis, forced companies to lay employees
of in droves. At the height of the downturn, unemployment numbers were
staggering.
However most financial experts
agree that the UK economy is now in full-fledged recovery, partly because
unemployment numbers have gradually been decreasing over the last few years. This
month, the trend continues, as the Office of National Statistics (ONS) revealed
that the number of people out of work fell to 2.16 million, dragging the
national unemployment rate down to 6.6%. In contrast, the number of people working
saw a record rise of 345,000 to hit 30.5 million; most of these people,
according to the ONS, are in full time employment.
More People in Full Time Employment than Ever
David Tinsley at BNP Paribas
commented on the nature of the trend to the BBC, highlighting the
fact that: "The
rise in employment this month is concentrated in full-time employees, not
self-employment, which in the past has been used to 'talk down' the strength of
the rise."